This e-book provides templates for 21 most effective credit and collection letters that will help you communicate better with your customer. The e-book is a culmination of our work with credit and collection experts over more than 700 credit and A/R transformation projects across the world.
The primary responsibility of any credit / collection’s representative is to stay in touch with customers and make sure buyers would pay ‘in full and on time’, every time. A regular day for any credit and collections analyst is quite tiresome from keeping a close tab on the health of the receivables to performing monotonous but important tasks such as sending out hundreds of emails.
Credit and Collection analysts typically spend about 30% of their time catering to ad-hoc requests such as unblocking orders, sending out additional invoice copies, account statements and other order related documentation. Managing these duties through formal correspondence is important but very tiresome as the analysts have to find relevant information, check contact details, compose emails and finally, send them. Scaling this process is especially difficult as credit and collections analysts are assigned hundreds of accounts with constantly increasing volume of open A/R.
This e-book will help credit and collections professionals improve productivity of the email correspondence process through best-performing email templates that we compiled from more than 700 collections and credit transformation projects across the world.
Don’t have the time to go through the e-book? Download these ready to use templates in a zip folder
Sample email 2.1 is written to welcome and establish credit terms with the customer.
Sample email 2.2 is written to get credit information from trade references
Sample email 2.3 is written to get credit information from banks.
Sample email 2.4 is written to remind the customer to renew the collateral certificate before the expiry date
Sample email 2.5 is written to remind the customer to renew the tax certificate before the expiry date
Sample email 2.6 is written requesting the customer for some additional credit information required to complete the credit application
Sample email 2.7 acknowledges the request for a credit extension by the customer, but then informs the customer why it cannot be set up
Sample email 2.8 is written to inform the customer regarding the extension of their credit limit
Sample email 2.9 is written when the customer’s order gets blocked due to outstanding payments
Sample email 2.10 is written to the sales team regarding new customers and extended credit limit for existing customers
Sample email 3.1 is written to inform the customer regarding payment dues
Sample email 3.2 is written to inform the customer regarding early payment discounts they can avail
Sample email 3.3 is written as the first reminder for the customer’s past-due invoices
Sample email 3.4 is written as the second reminder for the customer’s past-due invoices
Sample email 3.5 is written as the third reminder for the customer’s past-due invoices
Sample email 3.6 is written to inform the customer that the credit for their account has been suspended due to prolonged delinquency
Sample email 3.7 is written as a reminder to the customer about the unfulfilled payment commitment
Sample email 3.8 is written in an extra-ordinary circumstance in which the recipient is being reached out to for long outstanding dues
Sample email 3.9 is written as a polite reminder to the customer to clear few invoices that have outstanding payments
Sample email 3.10 is written to collect from customers who are very slow in their payments and have outstanding invoices
Sample email 3.11 is written as a polite reminder for customers who are usually fast-paying but have some outstanding invoices
By creating ready-to-use templates out of the most commonly used communication across customer accounts, it is possible to significantly reduce the amount of time taken to correspond with customers.
These standardized emails are easily identifiable and also improve credibility with the customers. Such systems make it possible for an analyst to select a group of ten customers in a batch, for example, and send an email to them via a single template which collects information relevant to each of them.
Though these templates are pre-written and ready to use there is still some level of manual intervention. A major load could be removed from credit and collections analysts by enabling these systems to respond to the ad hoc information requests from customers. Copies of due-invoices and other necessary documentation are automatically attached to the main correspondence.
Correspondence is the cornerstone of credit and collections process; it is imperative to have an automation solution that caters to this particular requirement. Ideally, a correspondence automation system should handle and maintain multiple correspondence templates that are needed by analysts. In addition, these systems should perform correspondence activity across mediums including print and mail, email and fax, as well as keep track of all phone-based credit and collection touchpoints. It should also be capable of completely automating manual work involved in creating correspondence, selecting accounts and contacts and sending out emails or dunning notices.
To learn more about technology solutions used by leading companies for credit and collections management, visit www.highradius.com
HighRadius is a Fintech enterprise Software-as-a-Service (SaaS) company. The HighRadiusTM Integrated Receivables platform reduces cycle times in the order-to-cash process through automation of receivables and payments across credit, electronic billing and payment processing, cash application, deductions and collections.
Powered by the RivanaTM Artificial Intelligence Engine and FredaTM Virtual Assistant for order-to-cash teams, HighRadius enables organizations to leverage machine learning to predict future outcomes and automate routine labor-intensive tasks. The radiusOneTM B2B payment network allows suppliers to digitally connect with buyers, closing the loop from supplier receivable processes to buyer payable processes.
HighRadius solutions have a proven track record of optimizing cash flow, reducing days sales outstanding (DSO) and bad debt, and increasing operational efficiency so that companies may achieve strong ROI in just a few months.
To learn more, please visit www.highradius.com
Integrated Receivables optimizes accounts receivable operations by combining all receivable and payment modules into a unified business process. The Integrated Receivables platform provides solutions for credit, collections, deductions, cash application, electronic billing, and payment processing – covering the entire gamut from credit-to-cash.
The HighRadiusTM Integrated Receivables platform stands out by enabling every credit and A/R operation to execute real-time from a unified platform with an end goal of lower DSO, reduced bad-debt, and faster dispute resolution while improving efficiency and accuracy for cash application, billing, and payment processing.
HighRadiusTM Integrated Receivables leverages RivanaTM Artificial Intelligence for Accounts Receivable to convert receivables faster and more effectively by using machine learning for accurate decision making across both credit and receivable processes. The Integrated Receivables platform also enables suppliers to digitally connect with buyers via the radiusOneTM network, closing the loop from the supplier Accounts Receivable process to the buyer Accounts Payable process.
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HighRadius Collections Software automates and optimizes the credit & collections management process to improve collector efficiency, minimize bad debt write-offs, improve customer relationships, and reduce DSO. It provides a complete set of tools to optimize and automate the credit collections management process and enable the better prioritization of credit collections activities All the information you need (invoices, dispute information, POD, claims, tracking info, etc.) on each case is automatically presented in a collections work-space and is ready for use. Apart from the wide variety of benefits that it has, it also comes with some amazing features like CADE (Collection Agency Data Exchange), collector’s dashboard which has prioritized collections worklist, automated dunning & correspondence, dispute management, centralized tracking of notes, call logs & payment commitments along with cash forecasting functionalities. The result is a more efficient collections team that contributes to enhanced cash flow and reduced DSO.